Prospecto

ECUADOR PROSPECTUS

For Professional Investors and Introducers ONLY. To be read in conjunction with the Terms & Conditions and Fund Factsheets.

A unique opportunity to

invest in the property sector in

Ecuador

Introduction Pegasus Property Funds offers a unique opportunity to invest in an open-ended range of funds in the property sector, offering three different share classes1 and timelines.

Blending a mixture of prime, undeveloped and individual parcels of land, residential and commercial construction, rentals and sales in major urban areas in Ecuador managed by a team of experienced professionals. Taking advantage of prospects for robust income coupled with excellent growth potential the fund range is the first of its kind offered to international investors aiming to outperform the benchmark index2 targeting a variable performance of between 20 – 35% net3 p.a. in US dollars.

2

1 Pegasus Property Funds (PPF) offers 3 strategies, share class A, B and C (see Fund Factsheet for more details).

The benchmark index of the fund range is the S&P Global BMI (Broad Market Index) calculated on a monthly basis.

3 Performance varies in each strategy and is not guaranteed, (see Fund Factsheet for details).

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1

Ecuador

A

B

Advantages •

Land Costs1 - Costs per m2 very depending on the location but remain low compared to other countries in the region.

•

Construction Costs2 - Costs per m2 are 30 50% (approx.) lower in Ecuador compared to other countries in the region.

•

Rental Yields3 - Yields are far superior in Ecuador, currently at around 8 - 10% p.a. compared to Brazil 4%, Peru 5% and Chile and Colombia 6% p.a. We only let properties to financially secure tenants with contracts of 1 - 3 years.

•

Transaction Costs4 - Costs remain low in Ecuador when compared to Brazil 11.5%, Argentina 10.8% and Peru 7.6%. By taking advantage of preferential rates costs are reduced to 4.5% (approx.) of the total property value.

C

Ecuador is the seventh largest economy in Latin America, located between Colombia and Peru on the Pacific Ocean. With a growing population and continued infrastructure projects demand for both residential and commercial properties continues to increase driven by local and international investment and demand. Ecuador won the best place to retire 2015 with the city of Cuenca named the second best place in the world to live achieving a score of 92.7 out of 100.

Ecuador now offers a investors a genuine location to take advantage of an emerging market in US dollars (source: Forbes 2015).

Location, Location, Location - All underlying assets in each strategy in the fund range are concentrated in three major urban areas in Ecuador. QuitoA (capital city) in the state of Pichincha, GuayaquilB (largest city) in the state of Guayas and CuencaC (3rd largest city) in the state of Azuay. Each province offers different demographics with regards to population, landscape, climate, type of land, type of construction, infrastructure, purchase and sale price per m2, spending power, disposable income etc. The weighting of the underlying assets varies in each location based on the analysis of the research team.

“Pegasus Property Funds

Unlocking the Myth”

1 Land Costs are variable in each specific strategy.

2 Construction costs are variable depending on the amount of construction in each the specific strategy.

3 Rental yields relate to share class C only and are variable.

4 Transaction costs relate to all 3 strategies, share class A, B and C and are preferential variable rates.

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2

Investment Approach

“Ecuador, the

only country in Latin America

where you can invest directly in US dollars”

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The current global economic climate has led many investors to seek uncorrelated investments that offer the opportunity to take advantage of assets which offer not only strong sale and rental yields but also the real prospects of short, medium and long-term capital growth and protection against inflation. Throughout the process we remain focused on the quality of the underlying assets – and their value – when managing each portfolio. We aim to generate the majority of the target outperformance through good asset selection, management and preferential discounts.

Investment Strategies We offer investors three diverse strategies taking advantage of the purchase and sale price differentials where growth and future price potential far exceeds the national and geographical average. We aim to achieve the performance objective through detailed research and analysis, coupled with our extensive network of contacts and asset management skills. Our dedicated property research team identifies those sectors, regions and property characteristics to take advantage of the investment cycle. This helps the investment team shape the portfolio by targeting particular sectors and properties which in aggregate could meet or exceed each strategies performance objective. The purchase, rental and sale of each asset is reviewed and approved by our FAB (Fund Advisory Board) which consists of qualified experts in each field of the process in order to maintain independent integrity of the highest quality of asset selection and produce the maximum performance possible for investors. Each strategy offers investors a different timeline ranging from 2 - 5 years while maintaining liquidity and flexibility.

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3

Fund Range Breakdown

Team

Share Class Comparison

We believe in people. At Pegasus Property Funds our team are qualified experienced experts in their field. This allows our team to take advantage of normally unavailable opportunities when selecting underlying assets. The FAB (Fund Advisory Board) oversees and makes all final investment decisions monthly. The FAB is made up of:

It is important that investors select the correct share class to suit their financial needs. The table below shows a comparison at the glance between each strategy in the fund range. For further details see the Fund Factsheets and Terms & Conditions.

• • • • • •

C

PPF Partners Legal Accounting Property Advisors Construction Architectural

With more than 100 years of combined experience investors are in safe hands.

Definition of Properties Each strategy in the fund range invests in a cross section of underlying assets including; prime, undeveloped and individual parcels of land.

Residential - including; independent or urbanisations (a community of properties), ranging from low cost affordable, mid-ranged detached, semi detached and luxury high-end properties such as apartments, lofts, studios and suites.

Commercial - including; offices, shops, hostels, hotels, bars, restaurants and business parks.

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B A Risk Rating 4 Timeline 2 Years Minimum US 50,000.00

Risk Rating 4 Timeline 3 Years Minimum US 70,000.00 Performance 25 - 30% p.a.

Risk Rating 2.5 Timeline 5 Years Minimum US 100,000.00 Performance 30 - 35% p.a.

Performance 20 - 25% p.a.

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4

Why Pegasus

?

Performance Each strategy in the fund range offers a high variable performance in US dollars ranging from 20 - 35% net p.a. The performance is compared against the S&P Global BMI (Broad Market Index) on a monthly basis.

Hard Currency Ecuador is the only country in Latin America that uses a base currency of US dollars. This reduces currency risk, volatility and inflation as all underlying assets are always held directly in US dollars.

Liquidity We understand liquidity is an important factor when choosing an investment, therefore each strategy in the fund range allows investors to withdraw up to 10% p.a. of their initial capital penalty free. (see Terms & Conditions).

“Building wealth through

property�

Flexibility Each strategy in the fund range has a different timeline to suit investors objectives and financial needs over the short, medium and long-term ranging from 2 - 5 years. (see Fund Factsheets).

Diversification Investments can be split between the 3 strategies in the fund range offering investors increased diversification, liquidity, flexibility and overall performance.

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Why Pegasus

?

Pegasus Property Funds, its partners and team have a wealth of experience in the investment property and asset management sector throughout Ecuador.

Our relationships, knowledge and skills enable us to capitalise on the current and future market conditions for the benefit of investors.

Disclaimer: This Prospectus is for private circulation and information purposes for Professional Investors and Introducers only and does not constitute a personal recommendation or investment advice or an offer to buy/sell or an invitation to buy/sell securities in any fund. The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable laws, rules and regulations of your country of residence. In some countries the distribution of this information may be restricted and it is your responsibility to find out what those restrictions are and observe them. Pegasus Property Funds (PPF) cannot be liable for a breach of such restrictions. Please always refer to the Fund Factsheets and Terms & Conditions. If a fund holds a limited number of underlying assets, the effect of price movements on one of more of the assets will have a more pronounced effect on the value of your investment than if a larger number of underlying assets are held. If a fund is invested in overseas markets or holds currencies other than US dollars, then currency exchange rate movements may cause the value of your investment to fall as well as rise. You may not be able to redeem your investment when you want because property in the fund can’t easily be converted into cash. If this is the case, we may have to suspend dealing meaning we cannot carry out your request to redeem your shares. The valuation of property is generally a matter of valuer’s opinion. Property may sell for less than valued which will reduce the fund value. Funds that invest in property related securities (equities) can provide potentially high returns over the short to long-term, but such returns will be subject to greater rises and falls than investing in lower-risk assets.

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Contact Us For further information: Telephone: +593 (2) XXX XXXX Address: XXXXXXXXXXXXXXXXXXXXXX Cumbaya | Quito | Ecuador Email: info@pegasuspropertyfunds.com Web: www.pegasuspropertyfunds.com

Registered in the Republic of Ecuador Reg No. Authorized and regulated by the Bolsa de Valores Reg No.